Ugro Capital Limited has received affirmed credit ratings with a positive outlook from both India Ratings & Research Pvt. Ltd and CRISIL Ratings Limited. India Ratings affirmed the company's Commercial Paper at IND A1+, with an increase in the amount to ₹8,000 million (₹800 crore). Bank Loan Facilities and Non-Convertible Debentures were affirmed at IND A+/Positive, with the Rating Watch with Positive Implications being resolved. Subordinated Debt was also affirmed at IND A+/Positive. These affirmations reflect the growth in Ugro Capital's franchisee post the acquisition of Profectus Capital Private Limited (PCPL) in FY26, strengthening its presence in prime loan against property (LAP) and machinery finance. The consolidated entity is expected to have a higher proportion of secured lending and on-book portfolio, with consolidated assets under management (AUM) estimated to be around ₹150 billion. CRISIL Ratings Limited reaffirmed the company's Non-Convertible Debentures at CRISIL A/Stable, Long Term Principal Protected Market Linked Debentures at CRISIL PPMLD A/Stable, and Long Term Bank Loan Facilities at CRISIL A/Stable. These actions follow the resolution of the 'Watch Developing' status. The ratings are supported by Ugro Capital's strong growth in franchisee, adequate capital buffers, focus on MSME funding with diversified exposure, and a significant off-book proportion supporting profitability. Weaknesses include a limited track record and moderately profitable operations, though improvements are expected from operational leverage and synergy benefits. The company has demonstrated strong capital raising capabilities, with a capital adequacy ratio of 25.4% as of 2QFYE26. Ugro Capital aims to maintain leverage below 4.0x and plans to raise further equity capital in FY27. The acquisition of PCPL is expected to enhance Ugro's product diversification, particularly in school financing, and increase the share of secured assets in its portfolio.